Rupee Climbs on Oil Relief

2026-07-27 03:54 By Mariene Camarillo 1 min. read

The Indian rupee strengthened to around 90.18 per dollar, retreating from near-record lows as easing Middle East tensions supported market sentiment.

Concerns over India's import bill and inflation outlook eased after Brent crude fell to around $93 per barrel after the US paused its strikes on Iran following two weeks of attacks, reversing part of last week's rally to $102 per barrel.

Additional support came from expectations of sustained foreign currency inflows after RBI Governor Malhotra said the central bank's dollar-mobilization measures had attracted nearly $32 billion, up from $20 billion through July 17.

The stronger inflow outlook is expected to bolster the RBI's capacity to smooth currency volatility after its intervention last week pulled the rupee away from fresh record lows.

Investors also turned their attention to this week's Federal Reserve policy decision, with markets expecting rates to remain unchanged while pricing in a high probability of a September rate hike.



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Rupee Climbs on Oil Relief
The Indian rupee strengthened to around 90.18 per dollar, retreating from near-record lows as easing Middle East tensions supported market sentiment. Concerns over India's import bill and inflation outlook eased after Brent crude fell to around $93 per barrel after the US paused its strikes on Iran following two weeks of attacks, reversing part of last week's rally to $102 per barrel. Additional support came from expectations of sustained foreign currency inflows after RBI Governor Malhotra said the central bank's dollar-mobilization measures had attracted nearly $32 billion, up from $20 billion through July 17. The stronger inflow outlook is expected to bolster the RBI's capacity to smooth currency volatility after its intervention last week pulled the rupee away from fresh record lows. Investors also turned their attention to this week's Federal Reserve policy decision, with markets expecting rates to remain unchanged while pricing in a high probability of a September rate hike.
2026-07-27
Rupee Near Record Low on Oil, US Tariffs
The Indian rupee weakened to around 96.58 per dollar, hovering near record lows as a sharp surge in crude oil prices and fresh US tariff measures weighed on sentiment. Brent crude jumped more than 7% to above $100 per barrel after Yemen's Houthis attacked two Saudi oil tankers in the Red Sea, exacerbating supply concerns as trade through the Strait of Hormuz remained severely disrupted. Sentiment was further dampened after the US imposed new tariffs of 10% to 12.5% on imports from around 60 economies under a forced-labor investigation, including a 10% duty on Indian goods, fueling concerns over global trade, India's export outlook, and broader emerging-market assets. Investor focus also remained on the Reserve Bank of India, with traders watching for further intervention after state-run banks were reportedly seen selling dollars on the central bank's behalf to curb volatility and prevent the rupee from breaching record lows.
2026-07-24
Rupee Pauses Losses Despite Oil Rally
The Indian rupee hovered around 96.4 per dollar, pausing its recent slide after touching its weakest level in more than two months, though it remained under pressure from surging oil prices. Escalating tensions between the US and Iran pushed Brent crude above $96 per barrel, heightening concerns over disruptions to oil supplies and worsening the outlook for the world's third-largest oil importer. Traders also warned the rupee could face renewed depreciation should Brent climb above the $100 mark. Meanwhile, sentiment was supported by expectations that the RBI would continue to back the currency if volatility intensified, following its net sale of $6.1 billion in the foreign exchange market in May after a net $8.9 billion sale in April. Additional support came from stronger foreign inflows into Indian bonds and equities after the central bank introduced measures to attract overseas capital, while foreign exchange reserves remained sufficient to cover around 10 months of imports.
2026-07-23